In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan[1][2]. The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation. If a borrower does default on a loan (due to insolvency or other event), that borrower forfeits (gives up) the property pledged as collateral - and the lender then becomes the owner of the collateral.
Casa Robino
Shared Hospitality Excavations
